Learn How to Claim Lost Wages From a Car Accident in Philadelphia

A car accident in Philadelphia, whether a fender bender or a more severe collision, can disrupt your life and your ability to work. While the physical injuries are a primary concern, the financial repercussions can be equally daunting.

Lost wages due to a car accident can leave you struggling to pay bills and keep your head above water. This guide will equip you with the knowledge to claim lost wages due to a car accident.

If you have questions or would like to speak with an experienced Philadelphia car accident lawyer, please contact us right away.

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What Qualifies as Lost Wages?

Lost wages refer to the income you cannot earn because of a car accident injury. It goes beyond simply missing workdays and encompasses various financial losses. Here’s a breakdown of what typically qualifies as lost wages:

Missed workdays—the wages you would have earned for the days you couldn’t work due to your injuries;
Missed overtime—the lost income from overtime hours you couldn’t work due to the accident;
Lost commissions or bonuses—additional income you would have been awarded based on sales or performance; and
Reduced work hours—work hours you lost working at a reduced capacity due to your work injuries, resulting in a difference between your pre-accident and post-accident earnings.

Consulting with a Philadelphia car accident lawyer can be highly beneficial if you have any questions about what is considered lost wages.

Calculating Lost Wages: Know Your Worth After a Car Accident

Understanding how to calculate your lost wages after a car accident is essential to receiving compensation for the full financial impact of your injuries.

Here’s a breakdown of the steps for calculating your lost wages, depending on whether you’re an hourly worker, salaried employee, or self-employed individual.

For Hourly Workers

Hourly workers should take the following steps to calculate their lost wages:

Gather proof. Start by collecting your pay stubs from the period you missed work due to the accident. You will also need 2-3 months of pay stubs to establish the number of hours you normally work. These documents will be crucial for calculating your lost wages.
Missed hours. Review your pay stubs and work schedule to determine the total number of hours you couldn’t work because of your injury.
Multiply your hourly rate. Once you have the total missed hours, multiply it by your regular hourly wage. The number you get will give you the base amount of lost wages.

Example: Imagine you regularly work eight hours per day, you missed ten workdays (80 hours), and your hourly rate is $20. Your base lost wages would be $1,600 (80 hours x $20/hour).

For Salaried Workers

Calculating lost wages for salaried employees is slightly different:

Divided by pay periods. Divide your annual salary by the number of times you are paid in a year—weekly, bi-weekly, monthly. The number you get gives you your typical gross pay per pay period.
Missed paychecks. You multiply the number of pay periods you missed due to your injury by your gross pay per pay period. The sum will determine your lost salary.

Example: If your annual salary is $60,000, and you receive bi-weekly paychecks (26 per year), your gross pay per paycheck is $2,308 ($60,000 / 26). If you missed four pay periods due to the accident, your lost salary would be $9,232 ($2,308 x 4).

For Self-Employed Individuals

Calculating lost wages for self-employed individuals requires a more nuanced approach:

Average income. Instead of a simple hourly wage or salary, you must determine your average weekly or monthly income from your tax returns or financial statements. Divide your annual gross income by the number of pay periods (weeks or months) in a year.
Lost earning potential. Beyond missed workdays, factor in the potential income you could have earned during your recovery period. Analyze your typical work schedule and workload to estimate what you would have realistically earned if not for your injury.
Documentation is key. The more documentation you have, the stronger your claim. Collect all client contracts, project proposals, invoices, and appointment records.

By following these steps and gathering the necessary documentation, you can accurately calculate your lost wages and ensure you receive fair compensation for the financial impact of your car accident.

What Are My Options for Filing a Lost Wage Claim After a Car Accident?

Pennsylvania is a choice no-fault state, meaning you can choose whether you want to be subject to limited tort (no-fault) or full tort (at-fault) rules. You make this election when you purchase insurance.

You can pursue compensation for lost wages from an at-fault party regardless of whether you have limited tort or full tort coverage, but the process looks a little different.

No-Fault Limited Tort Coverage

If you elect limited tort coverage, personal injury protection (PIP) insurance pays your medical expenses and up to 80% of your lost wages, regardless of who is at fault.

However, it is subject to the limits of your policy—if you carry only the minimum $5,000 PIP coverage, you will not receive compensation for more than $5,000 in damages. And as mentioned, PIP doesn’t cover the full cost of your lost wages.

To seek additional lost wages in excess of what PIP covers, you can file a personal injury claim against the at-fault driver.

Although such a claim will allow you to recover your economic losses, you cannot seek compensation for pain and suffering under the limited tort option unless your injuries involve serious impairment of a bodily function or a serious permanent disfigurement.

At-Fault Full Tort Coverage

If you have elected full tort, you can pursue compensation for all your injuries against the at-fault driver immediately. This includes compensation for both economic damages, like lost wages, and noneconomic pain and suffering damages.

Consulting with a Philadelphia car accident lawyer can help you determine which coverage you have and identify the best course of action based on your specific situation.

Don’t Let Lost Wages Add to Your Injury

Here at Rosen Justice Injury Lawyers, our dedicated Philadelphia car accident lawyers have a proven track record of recovering lost wages for our clients.

We’ll fight aggressively to ensure you receive the compensation you deserve for every missed paycheck. Contact Rosen Justice Injury Lawyers today for a free consultation. Let our experience and unwavering commitment to justice work for you.

Frequently Asked Questions (FAQs) About Lost Wages Car Accident Claims in Philadelphia

How Long Do I Have to File a Lost Wage Claim?

In Pennsylvania, the general statute of limitations for filing a personal injury claim, including lost wages, is two years from the date of the accident.

Can I Get Reimbursed for Lost Future Earnings Due to My Injury?

Yes, in some cases. If your injuries significantly impact your ability to work or necessitate a career change, you may be eligible for compensation for lost future earning potential.

Should I Hire a Lawyer to Help with My Lost Wages Claim?

While it’s not mandatory that you hire a lawyer for your claim, a Philadelphia car accident lawyer can be a powerful advocate. They can handle communication with insurance companies, investigate the accident to determine fault, and fight for the maximum compensation you deserve for your lost wages and other damages.